JUDGMENT

MRS. YASMIN ABBASEY, J.-In appeal presented before Income Tax Appellate Tribunal against order of Commissioner of Income Tax on 10-6-1986 the question for consideration was that:-"Whether for imposing penalty under section 108 of Income Tax Ordinance, 1979 for not filing return for the year 1982-83 could be deleted on the ground taken by the respondent, that as it was first year of their business and also because respondent had sustained losses therefore, they were under the impression that in case of losses no return is to be filed.The Income Tax Appellate Tribunal vide its judgment, dated 19-1-1991 has observed that:---"We concur with the views that a finding to the effect, that no reasonable cause for the delay of default existed is necessary for imposing a penalty, we further agree with the proposition that in order to consider whether an assessee had any reasonable cause for not filing the return, the income which is contemplated by the law is the income which as assessee believes...